Analysis of Macro Economics

“A macro economic factor is a pattern, characteristic, or condition that emanates from, or relates to, a larger aspect of an economy rather than to a particular population. The characteristic may be a significant economic, environmental, or geopolitical event that widely influences a regional or national economy” (CFI Team, 2022). A great way of analysing a business or product is to undertake a PESTLE analysis. PESTLE is an acronym for Political, Economic, Social, Technological, Legal and Environmental factors, and undertaking a PESTLE analysis is often a useful way to determine the success of a business/product, as well as highlighting any risk factors for a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats).

When looking at Prime, a clear social factor is that KSI and Logan Paul are famous across the globe and use that to their advantage in their marketing. Due to the limited supply and variety of products, Prime are able to hike up the prices without affecting the demand, which is an economic factor. Because KSI and Logan Paul are mainly known from YouTube, they are popular with younger audiences and as young people are typically more active, as a sports/energy drink, it is well placed for its target audience.

When looking at environmental factors, Prime hydration is recyclable (Prime, 2022), but still made from plastic so they could maybe look at alternatives in the future to improve sustainability. Furthermore, their energy drink is supplied in cans, which are less complex than plastic and have higher reuse rates, making them a greener alternative (Onstad, 2019).

One political factor is that the beverages range from 20 - 25 calories (about 2 minutes of running) and no added sugars, which fits perfectly into a ‘healthy eating’ campaign. The business could perhaps look at making it zero sugar/a zero sugar alternative like monster energy, by eliminating the natural sugars from the drinks and replacing them.

Overall, it is clear that Prime have thought about many factors that fit into a PESTLE analysis, and this allows us to identify their strengths, as well as potential improvements to the business.

 

References

Barrington, R. (2021) The impact of micro and macro environment factors on marketing, Oxford College of Marketing Blog. Available at: https://blog.oxfordcollegeofmarketing.com/2014/11/04/the-impact-of-micro-and-macro-environment-factors-on-marketing/ (Accessed: March 11, 2023).

Hydration, P. (no date) Collections, PRIME. Available at: https://drinkprime.uk/products (Accessed: March 10, 2023).

Momin, A. (2023) Red Bull Pestle Analysis: 6 factors that give the brand wings, PESTLE Analysis. Available at: https://pestleanalysis.com/red-bull-pestle-analysis/ (Accessed: March 11, 2023).

Onstad, E. (2019) Plastic bottles vs. aluminum cans: Who'll win the global water fight?, Reuters. Thomson Reuters. Available at: https://www.reuters.com/article/us-environment-plastic-aluminium-insight-idUSKBN1WW0J5 (Accessed: March 10, 2023).

Team, C.F.I. (2022) Macroeconomic factor, Corporate Finance Institute. Available at: https://corporatefinanceinstitute.com/resources/economics/macroeconomic-factor/ (Accessed: March 9, 2023).

Unknown (2022) Subject guides: Marketing: Pestle analysis, PESTLE Analysis - Marketing - Subject guides at University of Sydney. Available at: https://libguides.library.usyd.edu.au/c.php?g=508107&p=5994242#:~:text=PESTLE%20stands%20for%20Political%2C%20Economic,a%20new%20business%20or%20industry. (Accessed: March 9, 2023).

 (Maisie Gwynne)